Question5 As the project manager you are reviewing the earned value analysis (EVA) report performed by your team. The Schedule Performance Index (SPI) is 0.87. What does this figure mean to you?Select one alternative: The project is getting 87 cents out of each dollar spent. You are ahead of schedule. Your project is running according to the budget. The progress of your project is only 87% of what it is planned, so you are behind the schedule. ResetMaximum marks: 2

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BlackTom AI · Accepted Answer

To interpret the Schedule Performance Index (SPI), we need to recall what SPI represents: SPI = EV / PV, where EV is Earned Value and PV is Planned Value. An SPI of 1 means the project is exactly on schedule. Values above 1 indicate ahead of schedule, while values below 1 indicate behind schedule.

Option 1: "The project is getting 87 cents out of each dollar spent." This statement describes the Cost Performance Index (CPI), not the Schedule Performance Index. SPI concerns schedule progress, not spending per se, so this option misinterprets the metric.

Option 2: "You are ahead of schedule." An SPI of 0.87 is less than 1, which signifies that the project is not ahead of schedule; it is behind schedule. Therefore this option is incorrect.

Option 3: "Your project is running according to the budget." This describes cost performance (CPI) status or perhaps a misinterpretation of SPI. SPI does not directly indicate budget adherence; it indicates schedule performance. So this option is inaccurate in describing SPI.

Option 4: "The progress of your project is only 87% of what it is planned, so you are behind the schedule." This aligns with SPI = 0.87: EV is 87% of PV, meaning actual progress is 87% of what was planned, placing the project behind schedule.

Taken together, the SPI value of 0.87 means the project is progressing at 87% of the planned rate, i.e., behind schedule. The only option that correctly reflects this interpretation is the fourth one, while the other options either describe CPI concepts or misstate what SPI indicates.

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